Final Exam - New Jersey Life and Health
Which type of long-term care benefit would be most appropriate for a stroke victim who
requires speech therapy administered at her home? - correct answer-Home health care
Which of the following is NOT a federal requirement of a qualified plan? - correct
answer-Employee must be able to make unlimited contributions
Why are dividends from a mutual insurer not subject to taxation? - correct answer-Because
dividends are considered to be a return of premium
The treasurer of XYZ Insurance Company discovers that the treasurer's company is being
investigated by the Banking and Insurance Commissioner... - correct answer-Making false
financial statements
Which type of rider will waive the premium on a child's life insurance policy if the parent
paying the premium dies? - correct answer-Payor benefit
Which of these premium payment frequencies is not typically available to a policy owner? -
correct answer-Bi-weekly
Maria the agent would like to advertise an annuity product on a highway billboard. Which of
the following must be included in the advertisement? - correct answer-Her name
Which disability policy provision would address any concerns of the value of the benefits
decreasing over time? - correct answer-Cost of living benefit
Which of these is NOT a characteristic of the Accelerated Death Benefit option? - correct
answer-The benefit can be offered as a rider at a specific extra cost or may be at no cost
All of the following are included as part of a contract in the entire contract provision EXCEPT
the - correct answer-Changes made by the producer
The power given to an individual producer that is not specifically addressed in his/her
contract is considered what type of authority? - correct answer-Implied
Pat is insured with a life insurance policy and Karen is his primary beneficiary. They are both
involved in an automobile accident where Pat dies instantly and Karen dies 5 days later... -
correct answer-Common disaster clause
Key Person Disability Insurance pays benefits to the - correct answer-Employer
Under a disability income policy, which provision would be payable if the cause of an injury is
unexpected and accidental? - correct answer-Accidental bodily injury provision
,What will the beneficiary receive if an annuitant dies during the accumulation period? -
correct answer-The greater of the accumulated cash value or the total premium paid
Written notice for a health claim must be given to the insurer ___ days after the occurrence
of the loss. - correct answer-20
Craig submits a $500 claim for medical expenses. With a past due premium of $100, the
insurer pays $400. Which of the Uniform Optional Provisions covers this situation? - correct
answer-Unpaid premium
How many employees must an employer have for a terminated employee to be eligible for
COBRA? - correct answer-20
A licensed producer is required to file notice of any change of address within how many
days? - correct answer-30
Advertising material for a life insurance policy does NOT need to contain which of the
following? - correct answer-Agent's commission rate
What is the maximum fine for a producer violating a New Jersey Insurance law for the first
time? - correct answer-$5,000
How long must an individual be unable to engage in any gainful activity due physical or
mental disability in order to qualify for Social Security Total Disability? - correct answer-12
months
Sonya applied for a health insurance policy on April 1. Her agent submitted the information
to the insurance company on April 6. She paid the premium on May 15 with the policy
indicating the effective date being May 30. On which date would Sonya have coverage? -
correct answer-May 30
Under a life insurance policy, what does the insuring clause state? - correct answer-The
insurer's obligation to pay a death benefit upon an approved death claim
Jennifer is required to pay a specific sum out of pocket before any benefits are paid in a
year. Her health policy most likely contains a(n) - correct answer-deductible
How often must an insurance producer's license in New Jersey be renewed? - correct
answer-Every two years
Pierre the producer receives a premium for an individual health insurance policy. Pierre
MUST remit the premium to his insurer within ___ business days of receipt. - correct
answer-7
A life insurance policy normally contains a provision that restricts coverage in the event of
death under all of the following situations EXCEPT - correct answer-fare-paying passenger
, An insurance consultant is BEST defines as a - correct answer-producer who charges fees
for advice
An insurance company needs to obtain personal information from a third party concerning an
applicant. Which law do all insurers and their producers need to comply with? - correct
answer-Fair Credit Reporting Act
A professional liability for which producers can be sued for mistakes of putting a policy into
effect is called - correct answer-Errors and Omissions
The Commissioner issues a subpoena to a producer. The producer decides not to respond.
Which course of action must be taken by the Commissioner? - correct
answer-Commissioner may impose an administrative penalty
A Medicare Supplement basic benefit is - correct answer-The first 3 pints of blood per year
Krissa purchases a 10-year level term life insurance policy that has a death benefit of
$200,000. Which of these statements is true? - correct answer-The face amount and the
premium will remain constant over the 10-year period
What amount will be paid under a policy where the insured misstated his/her age? - correct
answer-An amount the premium would have purchased at the correct age
Within how many days must a producer notify the Department of Banking and Insurance of a
change in address? - correct answer-30
Which type of coverage pays an amount per day for hospitalization directly to the insured
regardless of the insured's other health insurance? - correct answer-Hospital Identity
New Jersey insurance law requires eligible individuals to make an election to continue health
insurance benefits within a MAXIMUM of _____ days after coverage termination - correct
answer-60
A _____ insurance company is one that was formed under the laws of a state other than
New Jersey - correct answer-foreign
All of the following are typically included in a life insurance policy illustration EXCEPT -
correct answer-Names of the beneficiary
Claims payable to a Disability Income insured, even when the insured can continue to work,
are the result of a - correct answer-Presumptive disability
XYZ Corp pays the tax-deductible insurance premiums for a key employee disability policy.
Which of the following would be the appropriate tax consequence? - correct answer-Benefits
are fully taxable
What is the purpose of the Medical Information Bureau (MIB)? - correct answer-To help
underwriters evaluate risk
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